Corn devalues over 30% in Brazil in 2013

31.07.2013

As the perspective for a record crop grows in Brazil, the average price of corn drops in the country, according to the Center for Advanced Studies of Applied Economics (Cepea) from the University of São Paulo. From the last week of 2012 until the end of July of this year, farmers have received 29.2 percent less for the grain, while companies were paid 31 percent less.

The shipping practically did not happen at the beginning of July, but stated to soar in the end. The weather was favorable in the second corn crop, which is nearing its peak in Paraná and Mato Grosso states. The frost could have generated damage in the corn crops of Paraná, Mato Grosso do Sul, and São Paulo because the plants were developing. It is still hard to measure the losses, says Cepea.

The price of the corn bag (60kg) in Brazil’s Bovespa for September closed at R$ 23.25 (around US$ 10.23) yesterday. The most expensive location selling the cereal in Brazil is Lajeado, Rio Grande do Sul (R$ 25), while the lowest price is sold in Sapezal, Mato Grosso (R$ 8.50). By comparison, corn in Rosario, Argentina, is sold at US$ 160/ton.


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